Thursday, March 8, 2012

SAP UNIT 4 LOGISTIC Lesson 3 Production


Just in time (JIT) is a production strategy that strives to improve a business return on invesment by reducing in-process inventory and associated carrying cost. To meet JIT objectives, the process relies on signals or Kanban between different points in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization's return on invesment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality.

Manufacturing Process
1.      Order creation
2.      Machine occupancy
3.      Order release
4.      Order printing
5.      Material staging
6.      Order execution
7.      Confirmations
8.      Good receipt

Multiple forecasting model and strategy
Multiple forecasting models and strategies can assit you in masking the best choice. Models are selected through the system using built in intelligence, while mySAP ERP continuously checks the validity of the model.

Sales Operation demand
Generates sales palns and/or production plans using forecast values and requirements from the sales information system and costing /profitability analysis as inputs for determining requirements.
Demand management
Connects forecasting functionality with production schedullinh, also etermines requirements quantities and dates for finished products and assemblies based on the plans from SOP.
Master Production Planning (MRP)
Detailed planning of replenishment schedules for required components. The output of MRP is either a planned order or a purchase requisition.
MRP I
Master Requirement Planning (MRP I) is the detailed palnning of replenishment schedule for required components. The output of MRP is either a planned order or a purchase requisition.

Sales and operation planning
Sales and Operation Planning (SOP) generates sales plans and production plans using forecast values and requirements from the sales information system and costing /profitability analysis as inputs for determining requirements.

Demand management
In Demand Management forecasting, functionality is connected with production schedulinh. Requirement quantities and dates for finished products and assemblies based on the palns from SOP are determined
Master Production Scheduling (MPS)
Master Production Scheduling (MPS) allows for critical resources or top level itmes to be palnned ith extra attention. MPS is either an optional step in the palnning process.

Manufacturing Execution
Includes several step : creation and release of a production order, goods isusues of components, confirmation of production activity, and goods receipts of the finished goods.

Order Settlement
Allocation of costs from the production order to another object.

Production Order
The production order is the central data object in shop floor control and manufacturing execution. The production order constains all data relevant to production objectives, material components , required resources and cost.
Production order process
a.       Sales order
b.      Availability check
c.       Outbound delivery
d.      Transportation
e.       Picking
f.       Goods issue
g.      Billing
h.      Payment process

Release production order
You must release a production order before you can process it. Once you have set the order status to Released, you can print shop floor papers, issue matereials from stock and confirm operations. 

Graphic planning table
You can use the Graphic planning table to get an overview of your short term orders and release production orders.

Order confirmation
Explain that production order confirmations record internal activities carried out for the order.
A confirmation can record the following : quantity produced by operation, personnel, production dates, goods movements and amount of activity.
A confirmation can reduce capacity on the work center, update cost, and/or automatically trigger the GR of the manufactured goods.

Types of completion confirmation     
·   Milestone completion confirmation, the system confirs all preceding operations, including sub-opearations, up to the previous milestones. mySAP ER bases confirmations on reported quantities and standard times.
·   Standard completion confirmation, the operations are confirmed using target values
·   Normal completion confirmation, you conduct individual completion confirmations, seeing target values as defaults. The system allows you to overwrite all input values so you can report variances in the production process.
·   Collective completion confirmation, the system displays a fast entry screen where you can enter multiple operations to confirm
·   Completion confirmations at order header level, orders can be confirmed at order header level, which can drive the automatic backflush of material consumption for all operations, if you so choose.

Good receipt
Good receipts to stock can be automatically posted when you confirm the last operation in a production order. Alternatively, you can report them in a separated transaction.

Settlement 
Explain that settlement of a production order means the actual costs incurred for the order are sttled (posted) to one or more receiver cost-objects (to account for the material produced or to a sales order).

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